Embedded value

Abstract: In this article, we analyze the asset and liability management and market risk systems of insurance companies. We discuss that the current system is not goal congruent and does not satisfy necessary conditions for effective control. It follows that managers are unable to run their business effectively. We develop a transfer pricing system that allows the clear separation of underwriting and investment activities, both on the risk and return aspects. It creates the appropriate incentive schemes. We illustrate this system with an example indicating the differences in incentives between the traditional embedded value measures and the proposed funds transfer pricing system.

Abstract: This study examines the relevance of fair value of assets and liabilities and mechanisms of good corporate governance as a moderating variable by using a sample banking companies listed in Indonesia Stock Exchange from 2012 to 2014 year. The sampling method using purposive sampling and analysis of research data using Eviews. Mechanism of Good Corporate Governance in the study visits of the independent board, institutional investors and the audit committee of the company. Furthermore, this research also investigates the value relevance of accounting information such as book value, earnings, the fair value of financial assets and liabilities with a view influence on stock prices and stock returns. Ohlson Model (1995) into the measurement model used in this study, and this study examines both the measurement model Ohlson is the pricing model and the model returns to see the consistency of the study. Significant results indicate that the book value, earnings, the fair value of assets and liabilities fair value has relevance value. So we can conclude all variables affect stock prices and stock returns. In addition, Good corporate governance mechanisms able to moderate over the value relevance of book value, earnings, fair value of financial assets and liabilities fair value.

Abstract: Most large Japanese manufacturers are good at creating value utilizing their engineering capabilities but poor at capturing value in terms of creating profit and added value. This paper discusses conditions to capture value, after explaining a distinction between value creation and value capture. In order to capture value, manufacturers have to (1) link manufacturing excellence with uniqueness and differentiation from competitors, and (2) create customer value, enticing customers to pay premiums for the differentiation, and to do these two things simultaneously. In the second half of this paper, we particularly focus on customer value and discuss the importance of the non-functional value. Non-functional value has become a critical factor for manufacturers to capture value by creating customer value.